Minutes:
The Committee received a report from Councillor Glyn Hayes as Chair of the Task and Finish Panel. Councillor explained that the Panel had undertaken its work over a four-month period and there was an opportunity for Members to provide suggestion for consideration and inclusion. One proposal, which had been presented to Full Council in February 2021 by the Liberal Democrat group, was considered. The proposal was to convert garages into houses and appoint a Climate Change Officer. Members noted that the garage proposal was worked through and had now been earmarked for inclusion in the following year’s budget. The Panel also concluded that the overall responsibility for Climate Change actions was held at Director level and all Officers would need to contribute to this. It was also noted that the budget setting exercise was not the appropriate forum to create new Officer positions.
Members were informed that the Panel had looked at the Medium-Term Financial Strategy, and in particular noted the difficulty in setting long term plans given the government’s short term funding settlements. The budget gap was a continuing concern, and Members noted that front line services may need to be re-examined given that most options for savings have been exhausted over the last few years.
Overall, the Panel found the budget to be sound. However, there remained cause for concern when looking ahead over the next few years. There remained ongoing uncertainty over the impact of the Covid-19 pandemic and Brexit. Whilst there may be political difference with the Fees and Charges set, the Panel found these proposals to be financially sound.
The following points were raised and noted:
· The Panel was chaired extremely well by Councillor Hayes
· The council was facing a number of tough challenges, but was still setting a good example of how to utilise the resources available to it
· It was noted that charities often suffered with short term funding settlements, with the uncertainty meaning only short-term employment contracts could be offered, which in turn had an impact on services. The question was raised as to whether the council might be affected in a similar way due to Government short term settlements. It was explained that the government settlement with the council was only part of the council’s income, with the bulk of funding coming from Council Tax and Business Rates, which allowed the Council to have a longer-term view.
· Members were advised that a concern with the General Fund was the fact that the rate of inflation was higher than the cap on Council Tax rises. This was not a short-term funding problem, but a structural problem which the government would need to address.
· The council was in a better position than other council’s in part because of the reserves it is able to draw upon; other councils might need the government to intervene sooner rather than later
A motion was proposed by Councillor G. Hayes and seconded by Councillor C. Juggins
RESOLVED (unanimously)
That the Committee note the work of the Panel in scrutinising the budget proposals and to note that the Panel found the budget proposals to be financially sound, and that these observations should be shared with the Cabinet